Market Drama

Welcome to this week’s Market Drama!

• The S&P 500 was up almost 1%.
• Nasdaq is now up 17% year-to-date. 
• The U.S. aggregate bond index was up and is now up 3.6% year-to-date. 
• Economic Data:
  • Inflation data – The core CPE index came in as expected at 4.6% year-over-year. 
  • Inflation is coming down sequentially at a slower rate than we’d like. 
  • GDP data for the first quarter came below expectations at a 1.1% annualized growth rate. 
  • Housing data came in worse than expected but we saw strong consumption growth at a 3.7% annualized growth rate. 
• Earnings:
  • The first quarter of the 2023 earnings season is more than halfway done. 
  • We’ve had positive surprises, especially on the sales front. 
  • 2023 consensus EPS estimates stopped falling. 

What to look out for this week: 

• The big item to look out for this week is the FOMC.
• The Federal Reserve is meeting Tuesday and Wednesday. 
  • On Wednesday there’s an 85% probability that they will hike interest rates by 25 basis points. 
• On Friday we will see the employment data for April. 

Stay tuned for data on this week, next week. 

– Andres